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Binance supports Stacks network upgrade: Bitcoin L2 scaling takes a step forward

2min Read

Bitcoin L2 network upgrade received support as Binance backed Stacks’ upgrade. Bitcoin’s TVL showed growth while Stacks’ TVL remained stagnant.

Binance supports Stacks network upgrade: Bitcoin L2 scaling takes a step forward

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  • Binance supported Stacks’ L2 upgrade for the Bitcoin network.
  • Bitcoin TVL saw positive growth, while Stacks’ TVL was on a downtrend, and the STX token remained bearish.

Although Bitcoin [BTC] wasn’t initially designed to function as a smart contract platform like Ethereum [ETH], the advent of layer-two solutions such as Stacks [STX] made it achievable.

Excitingly, crypto exchange Binance disclosed its support for the upcoming Stacks network upgrade and hardfork. The upgrade is scheduled to occur at the blockchain height of 787,651.

Read Stacks [STX] Price Prediction 2023-24

Bitcoin L2 network gets upgrade support

Binance made an announcement on 29 April regarding its support for Stacks’ network upgrade and hardfork. The good news for STX traders was that the upgrade wouldn’t impact token trading, nor would it create new tokens.

However, it’s worth noting that the Bitcoin L2 upgrade was set to occur at a specific block height of 787,651. Withdrawals were, however, going to be suspended at the block height of 787,645. At the time of writing, the blockchain height was 787,621, as per

The Stacks network operates with a unique design philosophy that prioritizes true decentralization. This innovative solution enables smart contracts and dApps to be executed on the Bitcoin network without intermediaries, leading to a more streamlined and secure process.

Also, the approach, known as “layer-2” scaling, enables developers to build additional features and functionality on top of the existing Bitcoin infrastructure without requiring changes to the underlying protocol. 

State of Bitcoin and Stack’s TVL

The rise of solutions like Stacks that enable smart contract functionality on the Bitcoin network is driving an increase in the Total Value Locked (TVL) of the network.

As of the time of writing, DefiLlama data showed that Bitcoin’s TVL reached $201.44 million, with an upward trend that indicates positive growth. 

Bitcoin TVL

Source: DefiLlama

However, a closer look at the TVL of Stacks revealed a less positive trend than Bitcoin. At the time of writing, the TVL of Stacks was $21.57 million, with a noticeable downtrend. 

Stacks TVL

Source: DefiLlama

Realistic or not, here’s STX’s market cap in BTC terms

STX on a daily timeframe

On the daily timeframe chart, the price movement of Stacks was lackluster. Despite this, STX was trading at around $0.72 at press time, showing a gain of almost 1%.

This gain reflected a two-day upward trend in the token’s price. However, it’s worth noting that STX remained below the neutral line of the Relative Strength Index, indicating a continued bearish trend. 

STX/USD daily timeframe chart

Source: TradingView


Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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